and Brian, Thanks, to you us all thanks joining of for today.
well today’s investors are as as in presentation. suggestions our which regarding thanking remarks reflected updated by and earnings our of earnings structure open for their our me feedback thoughtful Let the materials, prepared
global lay the enter software milestones player. leading achieved several as to fiscal Beginning growth AspenTech to our on slide for foundation year important a quarter stage in industrial the and next We X. help
AspenTech these by results free guidance expansion year, we and a believe solid laid the groundwork growth of range. resilient have the over promising midpoint our to fiscal for a marked cash fourth close above First, successful and future We for delivered margin time. a well growth ACV position demand flow quarter out successfully ACV ‘XX and
Second, fit this product transforming how in and our pleased OSI portfolio, integrating has early well these business with we’re our substantial made how into we assets. we given SSE, with progress journey and are and
proposition chemicals, We’re among energy, EPCs excited enhanced other can about across the solutions provide value and now utilities, customers industries. our
forward. we organizations teams, cadence and systems processes Third, built the a Emerson going on capture and and to growth between between establish to execute opportunities synergies these AspenTech
remain and with finally, the and focused partners on co-innovation customers. And we strategic R&D
cases Our customers. customer been promise received efforts in have by sustainability incredible strategies to advance use well our support and of show
representing a QX year efforts and transformation growth million, year-over-year. finish contract strong was value learnings. annual double-digit an was our the $XXX.X ‘XX XX.X% benefits Fiscal of and important show to of
free cash million. remarks. fiscal address performance $XXX.X flow While flow was in her Chantelle ‘XX will cash our free
Turning strong. to through our end performance. geographies our slide demand throughout most and and markets of quarter year, suite the In the X. was in walk I’ll
operations reminder our of priorities. year an mission of this environment to the of solutions performance the an important Our macro and against criticality unpredictable customers’ backdrop AspenTech is strategic
I’ll touch themes key suites. we’re now seeing across on our the high-level
X.X basis. of an growth AspenTech points contributing performed Heritage on First, well, ACV
market. an year, industry the improving after for a in outperformed engineering Our and suite this by years customers restructuring driven energy of business EPC environment strong
other the suites are new from projects. benefiting in We sustainability-related investing saw for represent our land-and-expand a material in new believe these growth customers contribution future. classic opportunity that or also from We customers
chemical companies quarter, in for our which in demand drives particularly was on line working performance MSC continue bulk This Chemical economic as producers dynamic more from impact the market chemicals our having subdued business. is of the pronounced OpEx quarter, third outlook. commentary through benefiting uncertain with most strength. refining a customers an from chemicals from fourth destoking and spend the impact for remained
at end trend the now commentary is this will expectation market last customers. of least based the Our from through on calendar recent year
the for continuation of in end years. fiscal of at APM’s have reflected in performance a and range guidance our ‘XX we experienced lower the came recent trend
capabilities While of opportunities a in capitalize building our relatively APM committed growth to its overall continue out on small potential business, represents markets. certain in portion we believe to remain and better its to
will to mode root cause On effects failure announce analysis closed and I’m and capabilities, IP tuck-in that that pleased cases as analysis This in power we note, other that use recently and FMEA provide product. and will and help a strengthen capabilities expand acquisition new and additional Mtell’s Mtell reach further distribution. transmission to to existing its into RCA our such short, industries
increasing and better-than-expected largest upstream SSE use year. The basis in points impact contract this in for terms The as total. by establishment our SSE’s well outperformance positive were sustainability of AspenTech, point first offset area and part Heritage products successful demand. of year lengths new synergies, the and their performance fiscal contract both, customers exceptional supports was of XX traditional cases. the growth both and of oil year gas the cycle in reinforces E&P of conditions number anticipated that as full of initial the ACV of including DGM and part as suite as had was AspenTech-like our contribution the solution large of minimum exceeding an attractiveness by transformation driven ‘XX for life well an as SSE
in this and to we is growth the delivered expertise important and electrification expand demand achieve to sales and and global by its DGM sales and grid capabilities fiscal funds our for governments focused are solid the DGM strategy North AspenTech’s its the imperative beyond. to environment performance global outside globally of effort DGM an ‘XX pleased with the activity of QX Furthermore, leverage on accelerate driver committed will Historically, America. ability been the suite. a U.S. the has to
business’s results. of XX among significant create integrated ‘XX, X. together. the made sales, AspenTech delivering we fiscal In product this slide In a to to fully solid new span we organization. marketing, of progress and bringing foundation now finance AspenTech Heritage other teams, and the built We development areas months, OSI, unified SSE Turning financial successfully while
our which, as offerings, refer of combined our what We DataWorks. IoT we inmation, completed now also acquisition forms with to industrial
the front, synergies Emerson our results On the part reflect in success objectives early as our of realizing transaction.
cost We million foundation laying progress with track In includes $XXX strategies significant for $XX we achieve are the our made million which joint on the EBITDA in to synergies. of have particular, synergies go-to-market Emerson. in
OEM forward. brings complementary a as business to focus, and We’re we’re and to skill excited our opportunities unique collaboration. expand jointly in industrial accounts aligned co-innovation or AspenTech [ph] set about Emerson and priorities and the see Emerson we either execution as going increasing software on well
executed in transformation. and we planned of line related achieve our fiscal Importantly, SSE. plan remain the ‘XX we to of OSI transformation for anticipated execution and it, to Having confident these done work the also and because this the all time business’s from outcomes
case example, towards Heritage we’re an support third-party in OSI’s network in evolution As out of like providers’ as business software-centric to implementation OSI, building model a the the part a services of business increase demand AspenTech. and secular
licensing. as introduce to customers perpetual token-ready to the also to completed encouraging the term market software And make work from We’re introduced the soon. we license our receptivity to DGM alternative we an have utility DGM early model receiving to suite
positioned been the transition of now capitalize we X, global important as on That business, to to continue see our energy the said, discuss we’re trends to with transaction we mega on and expanded As take discuss particularly sustainability have how opportunities, electrification I’d many to like moment which Emerson. our slide sustainability related pathway to of the of projects. through drivers a
Heritage operations. profitability our uniquely to drive AspenTech’s existing asset all suites three First, positioned across capabilities efficiencies customers’ energy and in are
process a capture energy carbon number and fiscal more. design, chain, engineering material sequestration, sustainability engineering in around biofuels suite. design transition we benefits batteries, see addressing started the growing and hydrogen also of direct air carbon While efforts already to In cases from electrical our capture systems ‘XX, and supply use production, recycling
supply supply such manage solar, demand gas In Monarch platform [indiscernible]. demand and wind broad are networks DGM, help array resources, and for a management as and electricity, customers our many key to and distribution using and oil systems, management of SCADA hydropower
certain also world. into use geothermal energy in micro parts presenting cross-sell opportunity management customers to DGM capture grid us the other the seeing originally capabilities, and are carbon than cases these showing in markets. anticipated sustainability suite happening Meanwhile, hydrogen are subsurface, interest heightened are of and interest Chemicals production, in in our with refining faster sequestration, we we SSE, storage that
Now, more logos new and customer well drive opportunities. market the is existing than ever, through growth, positioned sustainability-related gain win share to AspenTech
in sustainability products this to capabilities our X, we’re investing in to customers. see our and for first-mover enhance advantage can out slide benefit you build the co-innovation our in additional of As on space partnership R&D
Emerson helps optimize hydrogen this a infrastructure and that with to market. Microsoft CapEx, costs to and speed value year, As other expedite an the operating example, we develop demo chain to partnered solution joint
few turning and On as and that well are would detail. that in note slide, growth to a the work to more the discussion outlined examples customer future in several this that relevant we’re creating we’ve customers highlighted encourage this for X, our slide today those opportunities. value QX to wins demonstrate as and we’ve here you our through read On current
that and all is and of excitement meet been you that excited of from was potential our organization growth for to energized different colleagues It ‘XX now unified can AspenTech teams meeting, at At going discussion AspenTech recent conversation up opportunity possible tell our a Heritage around Wrapping what’s SSE palpable. the my here of Their world our fiscal months. and XX a OSI next part my annual with results, encouraged the was was have forward I AspenTech about chapter. I discuss team sales and today. about a materially the the
we foundation priorities. systems in off ‘XX, focus AspenTech. year we’re increase new our and business can kick we from to able we means this grow the entered ‘XX our to on a putting The and teams, necessary which processes now the scale achieving and success strong As fiscal fiscal had with place execution build in we go-to-market
X. strategies The to to to turning proposition We reacting very their and and solid and Customers industries want transition year a stack and to guidance. customers. our momentum. impact and with growing well to are ‘XX achieve long-term their all we’re and solutions line grappling value achieve sustainability expanded are efforts. to are slide customers well with shift bottom believe our this operational positively vision energy successful fiscal them to our ability to their Now a start for help ACV I positioned compelling Moreover, technology extremely across goals. foundation
for from Heritage growth DGM This ‘XX. points XX.X% and at is growth effectively outlook this environment. growth points the positive outlook least of demand X.X of includes of our AspenTech, end ACV in the points from least believe we ongoing the We fiscal of SSE. trends Our and X.X of X.X balances at growth the benefit with improved markets from most uncertainty macro in see focus execution of of
Some due experienced and key we conditions for except its ‘XX, chemicals. include: the our underpinning second long-term of sustainability on about the guidance in fiscal initiatives, market excited positive of we prospects that improvement guidance to efficiency will industry all digitalization, demand fiscal are markets, trends while half focus assumptions in which persist remain throughout ‘XX. were the its ‘XX market, assumes with that fiscal all In chemicals consistent our
to CapEx expect from in energy expected encouraging year continue of growth. The as as refining market initiatives. we AspenTech, Heritage Within another solid suite will positive the strength benefiting upstream market well from impact the across engineering support trends sustainability MSC the ongoing is the
we fiscal be APM, to its ACV similar to contribution for anticipate Finally, ‘XX. growth
not think anticipate attractive is to to an continue guidance improve selling APM does growth opportunity, we this While conditions year. our
in the our in term DGM, increasing due upgrade our offering. growth capacity, the will adopting two, market electrical funding For one, ongoing sales customers benefit confident investment DGM we’re ACV to of and our to: to DGM as DGM grow; in full including year improve and international expand sales a fiscal team; three, license ‘XX continues grids demand of
Turning to SSE.
as opportunity the growth upstream pleased CapEx, with fiscal number in among sequestration is of in AspenTech’s well support future traditional and customer of and are geothermal capture model. tokenization a energy, in efforts underlying SSE We as such this sustainability our investment ‘XX benefiting suite. benefits for growing from opportunities increased to areas performance others, as carbon its the
positive a note important was was of portion synergy said is in to onetime a nature. it the SSE’s fiscal to Having a outperformance in significant transformation ‘XX that, of that due impact that
business year transformation of which As base leveraging in this customers initiative. ACV ‘XX of software the and the duration conditions. Emerson was with SMS signed the renewed renewed to which begin the an time which the to largely SSE agreements contract we synergy align one or all will important existing legacy standard capture transformation fiscal Heritage approximately transaction term new in means impact terms convert that SSE the AspenTech’s almost large at SSE suite. is contract its contracts There have perpetual conversion remains of a of of ACV, by token and
multiyear over We period. expect this materialize a to
SSE’s SSE a growth transaction. compares growth announced mid-teens equates Overall, this contribution to which the when X.X of points our ACV business for rate, favorably expected Emerson we to expectations ACV
the With before that, I closing over call I Chantelle turn return remarks. would Chantelle? now like to to for
